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Tech company Zuora files for $100 million IPO

  • Zuora released its IPO prospectus on Friday, revealing plans to trade on the public market.
  • Revenue was $167.9 million, up about 49 percent from a year ago, in the last fiscal year.
  • Net loss was $47.2 million.
Tien Tzuo, co-founder and CEO of Zuora
Joey Dello Russo | Vimeo
Tien Tzuo, co-founder and CEO of Zuora

Technology company Zuora released its IPO prospectus on Friday, revealing plans to trade on the public market.

The cloud-computing company, which helps businesses manage subscription services, was backed by major investors like Blackrock and Benchmark. Its founder and CEO Tien Tzuo was an early Salesforce employee, and has been an outspoken advocate of subscriptions in the journalism business.

It plans to list on the New York Stock Exchange under the symbol "ZUO."

Here are stats for its most recent fiscal year, which ended January 31:

- Revenue: $167.9 million, up about 49 percent from a year ago

- Net loss: $47.2 million

- Recurring profit margin: 28 percent

- 950 customers in over 30 different countries

Zuora emphasized company culture in its note to investors, particularly the term "ZEO," which means "every employee is the CEO of his or her Zuora career."

"This has fostered a culture centered around entrepreneurship, innovation, ownership, and responsibility," Tzuo wrote in a letter to investors. "To be candid, I believe Zuora isn't run by its CEO or executive team; it's run by more than 900 passionate and innovative ZEOs, including me. The result is a company of empowered and invested employees who bring out the best in one other."

Benchmark Capital is the biggest outside shareholder with 11.1 percent of shares, and Benchmark's Peter Fenton also controls 11.1 percent, while executive officers and directors own 43.4 percent. Benchmark was also a shareholder in Stitch Fix and Snap, two of 2017's high-profile tech IPOs.

Tzuo has 10.2 percent of shares, and Redpoint, Shasta Ventures, Tenaya Capital and Wellington Management own less than 10 percent a piece.

Goldman Sachs, Morgan Stanley, Allen & Company and Jefferies are among the underwriters for the public offering.

The full S-1 is at SEC.gov